If unemployment is above its natural rate, what happens to move the economy to long-run equilibrium?
a. Inflation expectations rise which shifts the short-run Phillips curve to the right.
b. Inflation expectations rise which shifts the short-run Phillips curve to the left.
c. Inflation expectations fall which shifts the short-run Phillips curve to the right.
d. Inflation expectations fall which shifts the short-run Phillips curve to the left.
d
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The incentive to consume tax-deductible goods, instead of nondeductible goods, increases when
a. marginal tax rates are high. b. marginal tax rates are low. c. the inflation rate is low and relatively stable. d. This is a trick question: the consumption of tax-deductible goods is not affected by marginal tax rates.
John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene
a. True b. False Indicate whether the statement is true or false
A decrease in the quantity of resources
What will be an ideal response?
Inventories include each of the following except
A) unsold finished goods. B) goods in process. C) raw materials held by firms. D) office equipment.